Barclays to speed up cost cuts after extra taking £850m hit to compensate customers
Barclays said it intends to accelerate the run down of assets and cost cutting as its new chairman sought to stamp his mark on the British bank three weeks after firing the chief executive.
Chairman John McFarlane, who arrived at Barclays in April with a reputation for taking bold action, said on Wednesday he will cut its costs as a percentage of income to "mid 50s" percent and cut non-core assets to 20 billion pounds by 2017.
Barclays took an additional provision of 850 million pounds in the second quarter for UK customer compensation, mainly for mis-sold insurance products.
It reported an adjusted pretax profit of 1.85 billion pounds for the second quarter, up 12 percent from a year ago and ahead of the average analyst forecast of 1.75 billion pounds.
The higher mis-selling provision was largely offset by a 496 million pound one-off gain based on a U.S. court ruling related to the former assets of U.S. investment bank Lehman Brothers.